Audit: US funds may have paid for contracts with terrorists in Afghanistan

The U.S. government may have awarded taxpayer-funded contracts to terrorists and those who support the insurgency in Afghanistan, according to an audit issued Thursday by the Special Inspector General for Afghanistan Reconstruction (SIGAR).

The audit found several weaknesses in DoD's process to ensure U.S. contracting dollars are not being provided to persons and entities supporting the insurgency, according to SIGAR.

The audit, titled "Contracting with the Enemy," found that the Defense Department has failed to implement fail-safes aimed at ensuring U.S. funds do not flow to terrorists and other enemies.

Nearly $2 billion in contracts were awarded in 2012 alone, though it is unclear how much of that may have benefited the insurgency.

"The possibility that taxpayer money could be supporting the insurgency is alarming and demands immediate action," lead inspector John Sopko said in a statement Thursday. "Every effort should be made to implement stronger controls that protect our troops and ensure the success of our reconstruction efforts."